Local News

Kyushu Electric Power reported ¥234.7 billion in losses in its consolidated financial statement for the first three quarters of FY2012 (April ~ December) released on Jan. 30. The 90.51 billion year-on-year decline marks the worst third quarter loss on record and is the result of increasing fuel costs accompanying the long-term suspension of operations at its nuclear power plants. Power consumption declined due to power-saving efforts, but since the cost of liquid natural gas (LNG) and other fuels were reflected in customers’ fuel bills, sales rose 3.5% year-on-year to over ¥1.13 trillion, resulting in the third straight year of increased sales. The company recorded ordinary losses of over ¥233.1 billion (down ¥106.3 billion year-on-year), making for the second consecutive year of red ink in this category. Kyuden slashed expenditures on personnel and repairs as an emergency measures, but fuel costs and electricity purchased to offset insufficient supply both rose by over 40%. At the press conference, President Michiaki Uryu stressed the need for rate hikes and stated that compliance with new reactor safety standards due out in July will cost the company several billion yen. Source: Nishinippon Shimbun